Magontec Limited (ASX:MGL)

ALERT: Price-sensitive ASX Announcement for MGL

Current share price for MGL : $0.225 0 (0%)⁺

Announcement

Quarterly Report to 30 September 2026

Release

29 Oct 2026 8:56AM

Price at Release

$0.225

Full Release

Summary

Magontec Limited’s Quarterly Report to 30 September 2026 states that for the nine months ended 30 September 2026 the group delivered unaudited revenue of $59.4 million, up 28.9% on the prior corresponding period, gross profit of $12.8 million, up 38.1%, EBITDA excluding unrealised foreign exchange of $3.2 million, underlying operating cashflow of $3.4 million and profit after tax of $1.315 million, with net debt of $1.4 million and net assets per share of 78.0 cents; the improvement was driven by stronger performance in both divisions, with Cathodic Corrosion Protection benefiting from robust growth in electronic anode sales, including ICAS revenue up 26% in constant currency, while the Metals business returned to positive gross profit on higher alloy volumes, increased trading activity and strong Special Metals demand linked partly to aerospace and defence markets, although management noted ongoing challenges in Chinese magnesium anodes, soft European housing and automotive conditions, and said restructuring, efficiency measures and clearer separation of the CCP and Metals businesses are continuing, with fourth quarter 2026 expectations broadly steady in CCP and more subdued alloy demand partly offset by stronger Special Metals.

Key Points

Revenue for the 9 months to 30 September 2026 was $59.4 million, up from $46.1 million in the prior corresponding period.
Gross profit increased to $12.8 million from $9.3 million, while third quarter gross profit was $4.3 million, up 6% on the prior corresponding period.
EBITDA excluding unrealised foreign exchange improved to $3.2 million from a loss of $1.5 million.
Underlying operating cashflow was $3.4 million compared with an outflow of $1.3 million in the prior corresponding period.
NPAT excluding unrealised FX and significant items was $1.6 million versus a loss of $1.9 million in the prior corresponding period.
Reported profit after tax for the nine months was $1.315 million compared with a loss of $3.902 million a year earlier.
Cathodic Corrosion Protection gross profit was $10.4 million, up from $9.7 million, with total CCP revenue up 5% and gross profit up 8%.
ICAS electronic anode revenue rose 26% in constant currency terms over the prior corresponding period and was the main driver of CCP margin improvement.
European magnesium anodes achieved slightly higher sales volumes and gross profit growth of 24% in constant currency, while China remained highly competitive and margin pressured.
Metals gross profit improved to $2.4 million from a loss of $0.4 million, supported by stronger US and Romanian volumes, higher Special Metals sales and increased trading activity.
Overall magnesium alloy volumes sold to European and US customers were 61% above the prior corresponding period, while European metal sales excluding trading rose 29.6%.
Special Metals demand was strong, particularly from aerospace and defence-related markets, contributing significantly to the metals recovery.
Net debt at 30 September 2026 was $1.4 million, with a net debt to net debt plus equity ratio of 3.1%.
Net assets were $45.2 million, equivalent to 78.0 cents per share.
Cash and cash equivalents were $7.763 million at 30 September 2026, and total assets were $72.520 million.
Management is continuing an internal restructure to separate CCP and Metals more clearly, improve efficiency and tailor strategy to each business.
The company expects fourth quarter 2026 CCP sales to remain at similar levels to the prior nine months, while Metals recycling volumes may stay soft due to weaker European automotive production, partly offset by Special Metals and productivity gains.

IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.